“Mortgage rates have been low for years, but the impact of Brexit has brought us close to record lows once again, with jumbo rates already at their lowest levels, giving more borrowers a larger incentive to refinance,” said Mike Fratantoni, chief economist for the MBA.
There was a small boost in mortgage applications to purchase a home, although they are far less sensitive to weekly rate moves. Purchase volume rose 4 percent for the week and was 23 percent higher than the same week one year ago.
“Even though financial market volatility may be causing some anxiety, the combination of low rates and a still strong job market in the US outweighs those fears for these homebuyers,” opined Fratantoni.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to its lowest level since May 2013, 3.66 percent, from 3.75 percent, with points decreasing to 0.32 from 0.36 (including the origination fee) for 80 percent loan-to-value ratio loans. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to its lowest level since January 2011, 3.67 percent, from 3.74 percent, all according to the MBA.
Mortgage rates moved even lower Tuesday, as the yield on the 10-year Treasury, which rates loosely follow, fell through new lows. Some lenders were quoting 3.25 percent on the 30-year fixed for high quality borrowers, according to Mortgage News Daily.
Mortgage refinances jump 21% on near record low rates - CNBC
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